Month-on-month insolvencies in the UK have been on the decline since March this year when they reached a peak of 0.11 per cent. In yearly terms, the latest statistics from Experian revealed that the insolvency rate across the country fell to 8.7 per cent in October, with a total of 1,685 insolvencies recorded across the month, which is better than figures earlier this year.
But trends suggest that business failures are affecting certain areas disproportionately, confirming that the old adage of 'location, location, location' rings true when it comes to buying a business.
For example, the West Midlands showed the highest rate of improvement with just 0.007 per cent of businesses failing, compared with the previous year's figure of 0.16 per cent. The East Midlands also performed well, falling from 0.12 per cent in October 2011 to 0.09 per cent this year.
However, Wales, the North East and Yorkshire all faired poorly with reported increases in the number of insolvencies for the month.
While each individual business case will differ, figures such as these from Experian can offer broad overviews of the state of business in different regions and are worth keeping in mind when searching for the right acquisition.
For example, it could be that businesses in the struggling regions are on the market for less due to difficult trading conditions, but chances are they will be need an experienced buyer to turn things around in such tight times. Meanwhile, a business in the Midlands may be more expensive but the turnaround process could be simpler as growth in the region proves stronger.
Keep in mind when buying a business that location means more than just personal convenience. Variation in the strength of the local economy, consumer spending patterns and even weather conditions can all have an impact on the success of many a business.
Take a look at our map of administrations to get an overview of distressed businesses in the UK. 
Exciting opportunity to own a successful bakery with a loyal customer base, over 60 wholesale contracts, and a prime trading location.
LEASEHOLD
Successful building and refurbishment business with a strong reputation, capable of undertaking various projects in residential and commercial properties.
Exciting opportunity to acquire a well-established vehicle services business with a highly qualified team and impressive financial performance.
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